In today’s real estate market it helps to be creative as both a seller and buyer in order to get to your goal.
That might mean possibly selling or buying on a land contract. Typically in a land contract there is a down payment required, just as in traditional financing. Interest rates would be a few points above what the market rate is typically, and more often than not it would be a short term contact, with a 30 year amortization period, and a balloon payment due at the end of the short term contract. Property taxes and insurance would be included with the payment as well.
For a buyer who is in a financial position to afford the monthly payments associated with home ownership, but do not have the down payment necessary or their credit score may prevent them from obtaining a traditional mortgage for the purchase. For a seller, this could be a quicker and less expensive way to sell a property.
I would caution that if this is an option that you think about going with, that you retain an attorney who specializes in real estate law to draw up the contract.
Some homes that are listed with Realtors are also available to be sold on land contracts. Just ask your agent.
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